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Old 05-09-2008, 07:13 AM
smwinc smwinc is offline
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Re: Question About Time & Sales

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Couple of interesting threads from *cough* another forum

http://www.elitetrader.com/vb/showth...0&pagenumber=1

http://www.elitetrader.com/vb/showth...threadid=62411

And a longer one so higerh signal to noise ratio

http://www.elitetrader.com/vb/showth...threadid=26299

You will find at the VAST majority of prop shops, trading firms, or any institutional trading environment where their are intraday traders, there will be a majority of traders trading with the methods discussed there.

Trading at a very high frequency is like trying to standing under a shower of really hot water. You can't stand "still" or you burn - so you're constantly moving around, shifting in and out of the water.

You need to know what style is best suited to your trading environment.

To trade in the way these guys do (and the same as most people in a prop. environment) you need the right commission structure & technology to trade in that way.

As most people on the forum are independent traders, it's best to focus on what is best suited to your situation.

Even if you are too slow, or it's not worth the cost (commission / slippage) to try and nick a tick on every opportunity, you can still learn to read the depth and games to perfect your own entries, run your trades longer, and have a better understanding of how many events will play out that day.

Local traders test everything out by 'feeling'. Let them do it for you - you don't have to be the person making ticks from looking for stops, testing where demand & supply is, etc. But you SHOULD be trying to gain the same information they are gaining.

On a major event day, they are doing it to learn what the big boys are planning on doing when the news comes out. The profit they make / loss they incur is secondary.

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